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Phoenix LXXV: It's Like Deja Vu All Over Again

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Llama19

Llama19

Registered User
Jan 19, 2013
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Another Sunnucks article, Glendale arena RFP shows annual losses topping $5M

To quote:

"A request for proposal released this week by Beacon Sports Capital Partners LLC, a firm the city hired to find a new manager, shows arena operations posting losses of $5.5 million for the current fiscal year. Glendale expects to end the fiscal year with revenue of $6.9 million, but expenses of just under $12.5 million.

The two previous years saw the arena — home of the Phoenix Coyotes — lose $5.4 million and $5.1 million, respectively."

Source (pay wall): http://www.bizjournals.com/phoenix/print-edition/2013/04/26/glendale-arena-rfp-shows-annual-losses.html

Isn't it just like Sunnucks, a day late and a (millions of) dollars short... :shakehead

Hoo's there! ;)
 
Killion

Killion

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Feb 19, 2010
36,763
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OttawaRoughRiderFan*

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So... Everything I hear coming out of Canada (it is very little), says the Coyotes are about to be sold and stay in Glendale.

Feel free to correct me if I am wrong.
 
Slashers98

Slashers98

Registered User
Oct 3, 2008
2,387
327
Quebec City
KevyD said:
So... Everything I hear coming out of Canada (it is very little), says the Coyotes are about to be sold and stay in Glendale.

Feel free to correct me if I am wrong.
Click to expand...

What do you hear exactly? Dreger doesn't count as it was pure speculation on his part.
 
Nordskull

Nordskull

WAITING FOR NORDS
Sep 29, 2011
2,268
44
Saguenay, Qc
KevyD said:
So... Everything I hear coming out of Canada (it is very little), says the Coyotes are about to be sold and stay in Glendale.

Feel free to correct me if I am wrong.
Click to expand...

Correct.

Thats what I've been hearing for ... I'd say 3 years now.

Those media guy will finally be right huh? They may finally be right 3 years from now.

Perseverance is a good quality. ;-)
 

Whileee

Registered User
May 29, 2010
46,536
34,948
KevyD said:
So... Everything I hear coming out of Canada (it is very little), says the Coyotes are about to be sold and stay in Glendale.

Feel free to correct me if I am wrong.
Click to expand...

I would modify this KevyD (before you put it on The List ;)).

The scuttlebutt is that the NHL might be poised to enter into an agreement to sell the team to a group interested in keeping the team in Glendale. They have previously had similar agreements with IEH, Reinsdorf, Hulsizer and perhaps Jamison.

If such an agreement is reached with the NHL, the group would then still have to negotiate a lease agreement with the City of Glendale before any decision about staying in Glendale could be contemplated.

Finalizing a lease was a fairly uncertain process previously. Moreover, the financial situation in Glendale has turned sour. and the new mayor and council are not disposed towards a lucrative subsidy for the Coyotes. So, I would say that it is a dubious proposition to link an agreement on a sale with the long-term retention of the Coyotes in Glendale.

I would speculate that the NHL is positioning this very strategically. If they can come to a sale agreement with one or more groups, they will present that group to Glendale with a very tight timeline for negotiating a lease, and a very direct threat that the team will be relocated if there is failure to negotiate a lease. This "imminent threat" strategy worked well for them in previous negotiations (for the $25 million subsidy), and they seem likely to use this again to give any new ownership group the maximum leverage with the COG.
 
GF

GF

Registered User
Nov 4, 2012
547
0
But...
According to the document posted by CasualFan, the NHL has to renew their AMUL deal 5 days after the season is over but must submit info 3 days before that day. So they have until monday.

If they don't:
-Their AMUL deal is then void. The new owner would need to deal with COG. But they already started an AFU, so the new owner would need to either apply or deal something with new arena manager.
-Or CoG cave in (doubtful) and decide to provide a subsidy. In this case, the whole circus starts again with votes, and GWI and whatnot. I doubt this will happen.
-Or NHL don't/won't/can't sell the Coyotes and they are paying the bill for 2013-14 but need to deal with the new arena manager.

If they do:
-They will either need to find an owner or not, but then the circus starts again.

Am I missing something? Can the NHL renew their AMUL and sell the team? Do they have any penalties if they do that?

All of this is on a tight timeline as a relocation needs to be announced in about a month to give time to the hosting city, the time it needs to get ready.
 

thom

Registered User
Mar 6, 2012
2,261
8
Quebecor is owned by Pierre Paladeau the future owner of an nhl club.Tsn is owned by Bell media and sportsnet by rogers.If the story is broken on canadian side it will be a media by a french journalist.
 
blues10

blues10

Registered User
Dec 10, 2010
7,301
3,322
Canada
GF said:
But...
According to the document posted by CasualFan, the NHL has to renew their AMUL deal 5 days after the season is over but must submit info 3 days before that day. So they have until monday.

If they don't:
-Their AMUL deal is then void. The new owner would need to deal with COG. But they already started an AFU, so the new owner would need to either apply or deal something with new arena manager.
-Or CoG cave in (doubtful) and decide to provide a subsidy. In this case, the whole circus starts again with votes, and GWI and whatnot. I doubt this will happen.
-Or NHL don't/won't/can't sell the Coyotes and they are paying the bill for 2013-14 but need to deal with the new arena manager.

If they do:
-They will either need to find an owner or not, but then the circus starts again.

Am I missing something? Can the NHL renew their AMUL and sell the team? Do they have any penalties if they do that?

All of this is on a tight timeline as a relocation needs to be announced in about a month to give time to the hosting city, the time it needs to get ready.
Click to expand...

I believe that the Amul is transferrable.
 
Killion

Killion

Registered User
Feb 19, 2010
36,763
3,224
GF said:
Am I missing something? Can the NHL renew their AMUL and sell the team? Do they have any penalties if they do that?
Click to expand...

Certainly would be a problem for Glendale wouldnt it, having retained the services of Beacon, $400 an hour capped at $100,000.00? The NHL comes along & last minute renews the AMUL? I mean, talk about just burning money. And so lets say they pull that act of "yes, close to a closing, renewing AMUL, need more time, $6M plz or we leave; NOW!". Whats Glendale going to do then? Tell them no? I seriously doubt that. They'll just pay it all forward, a new and completely artificial deadline of December 31st targeted. Take the bids from the RFP, pick one, Global Spectrum or whomever then assuming management duties July 01 2014 if a deal isnt done. But honestly, thats a real nightmare. Totally lame duck season if a deal isnt reached and fast. Like this spring, early summer. And whatever deal is reached, Guarantee it'll be max 5-7yr term with an out clause. And yes, the NHL can just transfer the AMUL to a new owner if they want, end-running any need for whomever to even deal with Glendale in negotiating a Lease. However, they'd have to do something, as the Arena Management Fee's are separate, the COG obviously having to provide something, and apparently putting a ceiling of $6M on them.
 
Fugu

Fugu

RIP Barb
Nov 26, 2004
36,951
214
϶(°o°)ϵ
aj8000 said:
Majicman,

I hope you are not too disappointed when the deal never materializes. We have all see this act before, we have an owner dotting the i's and crossing the t's just a matter of time. This owner will disappear like the rest.

As for Killion, get rid of the owl avatar, I keep thinking you are fugu.
Click to expand...


I often lurk in 'ghost mode' especially off the business board because it's well documented in the mod community when my name appears in the "Who's viewing the thread" list-- posters run away. One of them said this song runs through his head:

http://www.youtube.com/watch?v=CD-E-LDc384


I guess I'm a gunslinger of a different sort. :laugh:
 

Whileee

Registered User
May 29, 2010
46,536
34,948
Killion said:
Certainly would be a problem for Glendale wouldnt it, having retained the services of Beacon, $400 an hour capped at $100,000.00? The NHL comes along & last minute renews the AMUL? I mean, talk about just burning money. And so lets say they pull that act of "yes, close to a closing, renewing AMUL, need more time, $6M plz or we leave; NOW!". Whats Glendale going to do then? Tell them no? I seriously doubt that. They'll just pay it all forward, a new and completely artificial deadline of December 31st targeted. Take the bids from the RFP, pick one, Global Spectrum or whomever then assuming management duties July 01 2014 if a deal isnt done. But honestly, thats a real nightmare. Totally lame duck season if a deal isnt reached and fast. Like this spring, early summer. And whatever deal is reached, Guarantee it'll be max 5-7yr term with an out clause. And yes, the NHL can just transfer the AMUL to a new owner if they want, end-running any need for whomever to even deal with Glendale in negotiating a Lease. However, they'd have to do something, as the Arena Management Fee's are separate, the COG obviously having to provide something, and apparently putting a ceiling of $6M on them.
Click to expand...

I would think that a $6M arena management fee with no long-term lease would be a financial disaster for a new Coyotes owner. How on earth do you build a fan base and corporate support without a settled, long-term commitment. I just can't see it.

I think it is much more likely that any potential ownership group would come to the COG with sights set on a much more lucrative AMF, and see if the COG budges. If the COG sticks to the $6M allocated in the budget, and the NHL keeps the sale price anywhere near $170M, I think the Coyotes are done in Glendale. The COG will have to pay much more than $6M per year to entice them to stay.
 
Killion

Killion

Registered User
Feb 19, 2010
36,763
3,224
Fugu said:
I guess I'm a gunslinger of a different sort. :laugh:
Click to expand...

... we "self moderate". Live by The Code. The Instigator Rule never implemented. Self Policing. Bench Clearing Brawls, Heaping On, all of it perfectly kosher. Turned the clock back & stopped it at like 1975, the Spectrum in Philly. Boston Garden.... we know how deal with miscreants all on our own thank you very much. M4B and all the rest of your Zebras? Ya. Good luck with that. Coup took place years ago. We "own" this joint.

Whileee said:
The COG will have to pay much more than $6M per year to entice them to stay.
Click to expand...

Well I guess we'll just see about that Whileee.... oh, look over there, wat dat? :wedgie:
 

CasualFan

Tortious Beadicus
Nov 27, 2009
3,215
0
Bay Area, CA
blues10 said:
I believe that the Amul is transferrable.
Click to expand...

If the league extends it, it is transferable at their sole discretion. Of course, it doesnt come with an AMOA which was the vehicle for the $25MM payments and Glendale, to date, has only $6MM for AMF in their FY14 budget.

Did the NHL really find an angel investor just 48hrs before the End of Season definition in the AMUL? Or did the NHL float yet another speculative potential owner in an attempt to increase their leverage with Glendale and/or Quebecorp?

Speculate accordingly.


Whileee said:
The COG will have to pay much more than $6M per year to entice them to stay.
Click to expand...

That might be a bit of a problem:
http://www.azcentral.com/community/...e-considers-steep-hikes-medical-premiums.html
http://www.azcentral.com/community/...-hike-budget-cuts-go-before-city-council.html
http://www.azcentral.com/community/...atitude-limited-revenue-lags-projections.html

Not much blood left in that rock...
 
Killion

Killion

Registered User
Feb 19, 2010
36,763
3,224
Ugmo said:
So it's you who's the guitar player for Loverboy!
Click to expand...

Ya, stahp with the Loverboy stuff already. No self respecting... like, get off the stage!. Spends his days trading Cher bandannas' on ebay.... looks like the Bastid Love Child of K.D. Lang & Meatloaf. Walkin coronary. Can you spell D.I.A.B.E.E.E.E.T.E.E.E's Mike?...

Loverboy%20-%20Mike%20Reno-%2001.jpg
 
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